Manufacturers' Campaign Against Government

Press, Volume C, Issue 29508, 9 May 1961, Page 18

Manufacturers' Campaign Against Government

(N.Z. Press Association—Copyright)

SYDNEY, May 7

A £Alm publicity campaign against the Federal Governments economic policy would be launched by Australian manufacturers this month, said the Sydney “Sunday Mirror” today. The campaign would seek re-imposition of selective import controls, the paper said It would also state the case of the manufacturers in the economy.

The campaign, by the Associated Chambers of Manufacturers of Australia was scheduled to begin on May 18 The "Sunday Mirror" said plans would be announced at a banquet in Canberra on the night before. The campaign would open with advertisements in newspapers and would include television advertising. It follows a campaign which the Victorian Chamber of Manufacturers began last month. This campaign urged the Government to ease the credit squeeze and impose import licensing to prevent substantial unemployment. Representatives of leading bankers, industrialists and retailers in Melbourne on Friday, attacked continuation of the Government's credit “squeeze.” The Australian Industries’ Development Association, representing leading bankers and industrialists, said that if the squeeze lasted until June. 1962. the country would be bankrupt. The chances of significant tax concessions in the 1961-62 budget appeared to be fading, political observers said in Canberra. Their view was based on a preview of the budget in a letter from the Secretary to the Treasury (Sir Roland Wilson) to the International Monetary Fund. The letter said the programme for expenditure would be biased toward expansion of exports. It also disclosed that the bank credit squeeze would continue until June 30 next year. The memorandum was tabled in the House of Representatives by the Treasurer (Mr Holt) on Thursday. The “Sunday Mirror" quoted “influential , quarters close to the Government” as saying that references to the budget meant: — (1) Significant tax concessions cannot be expected, though there may be sectional adjustments in tax rates; (2) The budget will be bal-

anced and financed from noninflationary sources;

(3) The Government will launch into an intensive overseas borrowing programme with its eyes on the London and New York markets;

(4) Another loan will probably be obtained from the International Bank; (5) Big development works, including roads programmes in Western Queensland and the Northern Territory, will be launched; (6) The standardisation of the railway line from Broken Hill into South Australia and the Kalgoorlie-Fremantle link of the trans-continental line will be started.

Many Government back benchers were looking forward to election year tax relief and a popular budget when it was presented on August 8 or 15, the “Sunday Mirror” said.

“But they say their hopes will not materialise now that Mr Holt has disclosed a continuance of the credit squeeze.''